Development land in Ukraine
We find the site, win the lease and support permitting up to the start of construction

Real estate developers and construction companies from outside Ukraine that intend to develop and have the capacity to do so. Purely financial investors without development capacity are not covered at this stage.

We handle (up to the start of construction)	The developer handles
A weekly scan of Prozorro.Sale against your criteria (city, land use, size, number of floors, budget) and a shortlist of plots	Investment decisions and all funding
Due diligence on each plot: cadastre, land-use code, planning conditions, lease terms, price history, why earlier rounds failed	Design and construction (including the construction licence)
Registration, deposit, bidding, signing the lease, registering the lease right	Financing, pre-sales and sales
Support in obtaining urban planning conditions and restrictions (MUO), preparing the construction permit file, applying for utility connections	Commissioning, handover to buyers, building management
Translation, accompanying visits, liaison with the council and authorities	Day-to-day running and taxes of the project company

Approvals are decided by the authorities. We support the process; we do not guarantee the outcome.

	Option 1: advisory	Option 2: aligned
Bidder and lessee	The developer's own Ukrainian company	The developer's own Ukrainian company
Our service fee	Cash fee per milestone	No service fee; share of project profit
Actual project costs	Paid by the developer	Paid by the developer
Suits	Developers who want fixed costs and full control	Developers who want our interests tied to the project

Both options can use the ready-made company add-on (section 6).

Site search and shortlist	$500–1,000 per month per city
Due diligence per plot	By appraised value (for leases: the lease value = annual rent × years): up to $5,000 → $200–300; $5,000–100,000 → $500; above $100,000 → 1%. Paid in advance, non-refundable
Auction support	1% of the lease value, minimum $2,000, payable after winning
Lease signing and registration	1% of the lease value, minimum $2,000, payable after registration
Urban planning conditions (MUO)	$0.5 per ㎡ of planned gross floor area, minimum $3,000, payable when issued
Construction permit file and submission	$1.0 per ㎡ of planned gross floor area, minimum $5,000, payable when the permit is issued

For the two permitting milestones the higher of the minimum and the per-㎡ amount applies. The planned gross floor area is taken from the planning conditions or the design brief.

Planned gross floor area	Planning conditions	Construction permit	Total
3,000㎡	$3,000 (minimum)	$5,000 (minimum)	$8,000
8,000㎡	$4,000	$8,000	$12,000
20,000㎡	$10,000	$20,000	$30,000

Why the auction and lease fees have a minimum: the value of a land lease is often small. A plot with about $9,500 annual rent on a 5-year lease has a lease value of about $47,000, so a percentage alone would not cover the work. Third-party costs (lawyers, surveyors, notaries, official fees, translation) are charged separately at cost.

Two-step distribution

Step 1: tiers above a 5% hurdle. The annual return is calculated on total project investment over the project period (simple interest). Profit up to 5% a year goes entirely to the developer. Above that, we receive a share of each band:

Annual project return	Our share of this band
0–5%	0
5–10%	2%
10–15%	4%
15–20%	6%
Above 20%	8%

Step 2: base share. Of the profit remaining after step 1, we receive 2%. Since we invest no capital, we share only in positive profit and bear no project losses.

Worked examples

These figures only illustrate the formula; they are not a return forecast. Assume total investment of $3 million over 3 years, so each 5% a year equals $450,000 of profit.

Case	Project profit	Annual return	Step 1	Step 2	Our total
Low profit	$300,000	3.3%	$0	$6,000	Minimum applies
Normal profit	$900,000	10.0%	$9,000	$17,820	$26,820 (3.0% of profit)
Strong profit	$1,500,000	16.7%	$36,000	$29,280	$65,280 (4.4% of profit)

Minimum

Our share is never less than the total Option 1 milestone fees for the work actually completed. If the profit share is higher, the profit share applies; if lower, the minimum applies. The minimum is paid from sales proceeds after completion, and it is also paid if the project ends at a loss, because by then our work is done and the loss comes from development and sales risk.

Entitlement by milestone

Milestone	Cumulative entitlement
Lease signed and lease right registered	40%
Planning conditions and construction permit obtained	70%
Construction started	100%

• Project stopped for reasons on the developer's side: completed milestones are paid in cash at Option 1 fees × 1.5.
• Auction lost, or permits refused: no fee from us; the developer covers only the actual costs incurred.
• Switching from Option 1 to Option 2: due diligence fees already paid count as project costs.

How profit is calculated

• One project, one project company, separate accounts. We may inspect the books at any time; the final settlement is audited by an independent accountant.
• Profit = sales revenue − land rent and acquisition costs − design − official fees − construction − reasonable financing interest − sales costs − taxes of the project company.
• Related-party contracts at market prices: where a contractor related to the developer builds the project, prices are at market level or checked by a third party.
• Developer management fee capped at 3% of sales revenue; any excess is not counted as a cost.
• Budget overruns above 10% of the approved total budget count as costs only with our written consent.
• Unsold units: units still unsold 12 months after completion are valued by an independent appraiser and included in the settlement, or our share is paid in units.
• Timing: an interim distribution when 50% of sales proceeds are collected, and a final settlement on completion.

Our rights in the project

• We take part in, but do not lead, investment decisions, with rights to information and to give advice.
• Our written consent is required for: approving the total budget, related-party contracts, selling units below cost, and guarantees given by the project company.
• Non-circumvention: for 24 months the developer may not bid on its own for a plot we proposed and the developer confirmed in writing.
• Plot-by-plot approval: due diligence and registration start only after both sides confirm a plot in writing.

Legal form: we do not become a shareholder of the project company. We sign a Development Services and Profit Share Agreement under which we provide the services and receive a success fee by the formula above. The final wording and tax treatment follow the advice of our partner lawyers and tax advisers.

• How it works: before you have chosen a plot, we register a Ukrainian limited liability company (TOV) and open its bank account, and keep it ready. Once you choose a plot, and before the auction deposit is paid, all shares are transferred to you at a notary and the beneficial owner register is updated. That company then registers for the auction and signs the lease.
• What it saves is time: registering a company takes days, but opening a bank account with a foreign shareholder often takes weeks, while auction registration usually closes in about a month.
• Why the transfer happens before the deposit: by the time of bidding the company already belongs to you, rights and obligations are clear, and the beneficial owner record is accurate.
• Exception: if you insist on taking over the company only after winning, the deposit must come from you and the risk of losing it is yours, as stated in the agreement.
• Fees: company set-up at cost; maintenance about $100–250 per month (bookkeeping, tax filings, director, registered address); share transfer at notary cost.

1. First call: you describe your development plans, target cities, scale and budget, and choose Option 1 or Option 2.
2. Framework agreement: the option, fees or profit-share rules, non-circumvention and plot-by-plot approval.
3. Site search: we send a weekly shortlist; you confirm in writing which plots to examine.
4. Due diligence: we deliver a report; you decide whether to bid and your maximum bid.
5. Company: you use your own Ukrainian company or the ready-made company add-on.
6. Auction and lease: registration, bidding, signing the lease, registering the lease right.
7. Permits before construction: planning conditions, design brief, construction permit, utility connections.
8. Construction starts: our service obligations end here. Under Option 2, the profit settlement runs until the final audit and distribution.

Current fees apply from 29 October 2026. The final terms of each project are those in the agreement signed by both parties.